Runner Automobiles endured a loss of Tk 14 million in the second quarter through December of FY26, due mainly to lower sales in the three-wheeler segment amid temporary supply chain disruption.
The country's pioneering motorcycle manufacturer had earned a consolidated profit of Tk 40 million in the October-December quarter of the year before.
Accordingly, earnings per share (EPS) stood at Tk 0.12 in the negative for Q2 of FY26, as against Tk 0.35 for the corresponding period a year earlier.
The company went into the red in the quarter to December despite an 8 per cent year-on-year rise in sales to Tk 2.95 billion, as its most profitable unit experienced a setback.
Supply chain disruptions between Dhaka and Chattogram severely affected product delivery, hampering sales of three-wheelers, said Shanat Datta, chief financial officer (CFO) of Runner Automobiles.
"Demand for three-wheelers remained high, but we couldn't supply," said the CFO, adding that due to an acute shortage of locomotives at Bangladesh Railway, freight operations were suspended for 11 days in late December last year.
Runner Automobiles' overall sales growth in the quarter to December was driven by strong business performance in the segments of commercial vehicles and electric motorcycles.
However, lower sales of three-wheelers eroded the company's bottom line.
Sales of commercial vehicles and electric motorcycles grew more than 40 per cent, while sales of three-wheelers dropped 14 per cent during the quarter under review.
As the supply chain issues have already been resolved, the three-wheeler segment is expected to show improved performance in the coming quarters, said Mr Datta.
Runner's three-wheeler manufacturing plant was established in February 2023 and put into operation in August the same year. Runner built the plant with technical support from India's Bajaj.
Capital worth Tk 2.65 billion, raised in May 2023 through sustainability bonds, was used as working capital for three-wheeler manufacturing and for building a rooftop solar plant.
Runner secured profits in the first six months of FY26, supported by robust sales growth, particularly in the three-wheeler segment.
The company reported a profit of Tk 29 million for July-December last year, supported by strong first-quarter earnings, against a loss of Tk 42 million in the same period of the previous year.
The consolidated net operating cash flow per share dropped to Tk 7.31 for July-December 2025, as against Tk 14.11 for the same period last year, due to repayments made to suppliers.
The consolidated net asset value per share also dropped to Tk 65.96 as of December last year from Tk 66.70 in June last year, primarily driven by the decline in earnings.
Meanwhile, following the latest earnings disclosure, the stock of Runner fell 6.15 per cent to Tk 33.50 per share on the Dhaka bourse on Wednesday.
Annual performance:
Runner Automobiles returned to profit in FY25 after losses in the previous two consecutive years as sales grew, particularly in the three-wheeler segment.
Battered by economic challenges, the automobile industry faced a significant decline in sales due to increased material prices, a substantial increase in fuel costs, and inflationary pressure.
The motorcycle manufacturer made a consolidated profit of Tk 102 million in FY25 against a loss of Tk 61 million in FY24. Runner also suffered a loss of Tk 880 million in FY23.
Returning to profit, the company declared a 10 per cent cash dividend for FY25, compared to 11 per cent paid for the previous year.
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